1. Chapter 8
Using Television

2. Television Pros
Reaches 98% of all U.S. households – Mass coverage and low cost
Offers creative flexibility - Selectivity
Efficient for large advertisers to reach a mass audiences
Digital television will open more opportunities for advertising
Creativity
Prestige
Social Dominance

3. Television Cons Message is perishable; easily forgotten
Audience is fragmented; skewed toward lower income consumers
Shorter spots (Brevity)
Clutter
Zapping -- Remote controls and channel surfing

4. Limitations of Television
Cost of commercials
Household viewing hours remain constant
Fragment audience
Lower ratings
Competitive environment for viewer’s time and attention
Growing use of shorter spots

5. Rating Basic measure of television Rating = Program audience
Total TV households

6. Gross Rating Points
Gross rating points illustrate the weight of a schedule in terms of the total ratings for all spots bought.
Each rating point represents 1% of the universe being measured for the market.
GRPs are a function of reach and frequency.
They are calculated by multiplying insertions by the rating.

7. GRPs Measure Weight of a Schedule

8. Share of Audience
Percentage of households using television that are watching a particular show
Share =
Number of viewers per a certain show
Households using television

9. The Many Faces of Television
Network television
Spot television
Local television
Syndication
Cable television

10. Network Television
Comprised of local stations that contract to carry network programming
Big Four
ABC
NBC
CBS
FOX

11. Dayparts Morning, 7:00-9:00am Monday-Friday
Daytime, 9:00am-4:30pm Monday-Friday
Early fringe, 4:30-7:30pm Monday-Friday
Prime-time access, 7:30-8:00pm Monday-Saturday
Prime time, 8:00-11:00pm Monday-Saturday, 7:00-11:00pm Sunday
Late news, 11:00-11:30pm Monday-Friday
Late fringe, 11:30pm-1:00am Monday-Friday

12. Terminology
Clearance – the percentage of the network’s lineup that has agreed to clear their schedule for network programming
Compensation – networks share advertising revenues with their affiliates in return for using local station time for its programs
Block programming – “hammock position” – new show in between two hit shows

13. Spot Television When national advertisers buy from local stations
Placed through station reps

14. Defining the Television Coverage Area
Total survey area
Designated market area
Metro rating area

15. Local Television Advertising
TV day spot buying
Pre-emptive rate
Station sells slot to another advertiser if better rate comes along or for a package deal.
Run of schedule (ROS)
Lower rate because station uses whenever spot is available
Package rates

16. Television Syndication
Sale of television programming on a station-by-station, market-by-market basis
Barter syndication: offer right to run show in exchange for commercial time during the show

17. Three-Tier Pricing Structure for Syndication
Top 10 blockbuster = proven off-network reruns
Second tier = sizable, loyal audience
Talk shows and less popular reruns

18. Stripping
Most local stations schedule syndicated shows on a five-nights/week basis.

19. Examples of Shows in Syndication

20. DVR problems Half of recorded shows are never watched
Zipping -- Fast-forward through commercials

21. Brand Integration
Product placement
Sponsor entire program

22. Syndicated Rating Services
Nielsen ratings
People meter attached to each television set
Use of diaries
Major areas of concern
Sweep weeks
Diaries
Exposure value

23. Nielsen’s People Meter

24. Summary Television is more than an information medium.
Television is becoming an interactive system.
Television is becoming the gateway to communication.
Medium filled with opportunities